NIS 2 and DORA: Connections, Differences, and Synergies

Introduction
The growing digital interconnectedness and the evolution of cyber threats have driven the European Union to strengthen its regulatory framework for digital security and resilience. The NIS 2 Directive (Network and Information Systems) and the DORA Regulation (Digital Operational Resilience Act) are two distinct yet complementary tools to address these challenges. This article explores their key differences, practical implications for businesses, and how these two frameworks integrate.

Key Differences

1. Scope of Application

• DORA: Specific to the financial sector, it covers banks, insurance companies, payment institutions, crowdfunding platforms, and critical ICT service providers supporting these institutions.
• NIS 2: Applies to critical sectors such as energy, healthcare, transport, telecommunications, and essential infrastructure, taking a horizontal approach to network and information system security.

2. Main Objectives

• DORA: Ensures the continuity of financial services during cyberattacks or technological disruptions, with a focus on transparency and resilience of ICT providers.
• NIS 2: Enhances overall cyber resilience in essential sectors, promoting cooperation among Member States and harmonizing security standards.

3. Regulation vs Directive

• DORA: As a regulation, it is directly applicable in all Member States without the need for transposition.
• NIS 2: As a directive, it requires transposition into national laws, allowing for specific adaptations in each country.

4. Focus on Third-Party Providers

• DORA: Emphasizes managing risks associated with critical ICT providers, including audits and direct oversight.
• NIS 2: Includes third-party providers in the value chain but with a less focused approach compared to DORA.

5. Incident Reporting

• DORA: Requires detailed and timely notifications, even for minor incidents.
• NIS 2: Mandates reporting only for major incidents, with a 24-hour limit for initial notification and 72 hours for updates.

6. Timelines

• DORA: Compliance required by January 17, 2025.
• NIS 2: Transposition into national laws by October 18, 2024, with compliance expected by 2026.

Practical Implications for Businesses
To comply with NIS 2 and DORA, companies must implement the following:

• Compliance Process Automation
  Leverage technological tools to monitor compliance and reduce operational burdens.
• Employee cybersecurity training & awareness
  Ensure staff are aware of the regulations and prepared to handle incidents effectively.
• Cross-Sector Collaboration
  Foster information sharing between critical sectors and the financial sector to enhance overall resilience.

Synergies and Conclusion
DORA and NIS 2 complement each other in strengthening the EU’s digital security and resilience, providing a regulatory framework that is both specific and complementary. NIS 2 establishes cybersecurity obligations for essential sectors, aiming to protect critical infrastructures and manage technological risks through preventive and reactive measures. DORA, on the other hand, focuses on the operational resilience of financial institutions, imposing requirements for business continuity, ICT risk management, and recovery capabilities in the event of incidents.

The synergies between these two frameworks optimize risk management at both sectoral and cross-sectoral levels, creating a secure and resilient ecosystem. Adopting an integrated approach enables organizations to enhance protection against cyber threats and ensure operational continuity, effectively meeting regulatory obligations and improving long-term resilience.

In conclusion, a unified compliance strategy for NIS 2 and DORA is essential to achieve robust and responsive defense against emerging digital threats.

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Sources:

• NIS 2 Directive: EUR-Lex — NIS 2 Directive
• DORA Regulation: EUR-Lex — DORA Regulation
• ENISA Publications
• EBA Guidelines